As part of a series examining US oil and gas sector regulations, this report analyzes the costs and benefits of repealing or modifying a Department of Transportation rule to improve the safety of railroad tank cars carrying crude oil and ethanol.
The MARKET CHOICE Act would replace the federal excise tax on gasoline and diesel fuel with a tax on GHG emissions. This analysis projects that energy-related CO2 emissions would be approximately 29% below 2005 levels in 2030.
Lower prices for carbon emissions allowances have posed a crisis of confidence in several trading programs. A new mechanism under the EU ETS appears to be good news for the program, helping allowance prices to stabilize.
Long-run changes in the costs of renewables and natural gas as well as technological innovation have cut the cost of emissions reductions in the US electricity sector and made carbon pricing more potent than previously thought.